Nvidia (NVDA) Third Quarter 2024 Earnings Report

Nvidia Shares slipped 2% in extended trading Tuesday after the chipmaker reported fiscal third-quarter results that beat Wall Street forecasts. But the company cited a negative impact in the next quarter due to export restrictions in China and other countries.

“We expect our sales to these destinations to decline significantly in the fourth quarter of fiscal 2024, although we believe this decline will be more than offset by strong growth in other regions,” Nvidia said in a statement. letter to shareholders.

Here’s how the company performed, compared to the consensus among analysts surveyed by LSEG, formerly known as Refinitiv:

  • Earnings: $4.02 per share, adjusted, versus $3.37 per share expected
  • Income: $18.12 billion, versus $16.18 billion expected

Nvidia’s revenue grew 206% year-over-year in the quarter ending October 29, according to a report. statement. Net income, at $9.24 billion, or $3.71 per share, was up from $680 million, or 27 cents per share, in the same quarter a year ago.

The company’s data center revenue totaled $14.51 billion, up 279% and above the StreetAccount consensus of $12.97 billion. Half of data center revenue came from cloud infrastructure providers such as Amazon, Nvidia said. The gaming segment contributed $2.86 billion, up 81% and above the StreetAccount consensus of $2.68 billion.

As for the forecast, Nvidia reported revenue of $20 billion for the fiscal fourth quarter. This implies revenue growth of almost 231%.

During the quarter, Nvidia announced the GH200 GPU, featuring more memory than the current H100 and an additional Arm processor onboard. The H100 is expensive and in demand. Nvidia said Australian company Iris Energy, owner of Bitcoin mining data centers, was buy 248 H100 for $10 million, which works out to about $40,000 each.

Just two years ago, sales of GPUs for playing video games on PCs were Nvidia’s main source of revenue. The company now derives most of its revenue from deployments within server farms.

The introduction of ChatGPT chatbot MicrosoftThe OpenAI-backed startup OpenAI in 2022 has many companies looking for ways to add similar generative AI capabilities to their software. As a result, demand for Nvidia’s GPUs has strengthened.

Nvidia faces obstacles, including competition from AMD and lower revenue due to export restrictions that may limit sales of its GPUs in China.

Some analysts said ahead of Tuesday’s report that they expected another quarter of outperformance from Nvidia.

“GPU demand continues to outpace supply as AI generation adoption expands across all industry verticals,” Raymond James’ Srini Pajjuri and Jacob Silverman wrote in a note Monday to customers, with a “strong buy” recommendation on Nvidia shares. “We are not too concerned about competition and expect NVDA to maintain a share above 85% in AI generation accelerators even in 2024.”

Excluding after-hours movement, Nvidia stock is up 241% so far this year, significantly outperforming the S&P 500 index, which is up 18% over the same period.

Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.

This is breaking news. Please check again for updates.

WATCH: Main risk to Nvidia’s profits lies in its relationship with China, says Degas Wright

Main risk to Nvidia's profits lies in its relationship with China, says Degas Wright


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